Painting Estimates and Real Estate

I have recently begun to look at real estate investing. With the number of foreclosures in the market, and depressed prices, this is a good time to get into the market.

We spent several months educating ourselves before we began to seriously look at properties. Now that we are doing so, I see a lot of similarities between estimating painting jobs and purchasing real estate.

In both cases, you must know your numbers. I can analyze a property without leaving my desk. If the numbers work, then we go look at it to verify assumptions and put our eyes on it. But knowing the numbers is key--if the numbers work it is a good deal. If the numbers don't work, I would be wasting my time.

This is no different from painting. If you know your numbers, you can easily identify what price you must charge on any particular job. If you don't know your numbers, you are wasting your time, and maybe burning money.

Estimating/ sales is a numbers game. We aren't going to get every job, but if we have enough leads and land a reasonable number, we will be profitable. The same is true in real estate--we have already submitted two offers and are looking for more to bid on. We won't get them all, but if we make solid offers our real estate gig will do well.

I've heard many contractors say that our profession makes us naturals to get into real estate. I think there is some truth in that. But I think what really prepares us is knowing our numbers.